Shoppers Stop (SHOPERSTOP) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 sales reached Rs. 1,336 Cr, up 6% year-over-year, with EBITDA up 68% and gross margin stable at 37.6% (Non-GAAP).

• Departmental stores achieved 5% like-for-like sales growth, with overall business SSG at 3%, reversing last year's negative trend.

• Premium portfolio contribution rose to 67%, up 8% YoY, and beauty sales grew 17% to Rs. 284 Cr.

• First Citizen Club saw record enrolments, with loyalty sales contributing 85% and repeat purchases at 70%.

• Board changes: Mr. B. S. Nagesh retired as Chairman & Non-Executive Director; Mr. Nirvik Singh appointed as Chairman effective July 18, 2025.

Financial highlights

• Non-GAAP EBITDA increased 68% to Rs. 26 Cr; GAAP EBITDA up 21% to Rs. 176 Cr compared to Q1 FY25.

• Consolidated revenue from operations for Q1 FY26 was ₹1,161.08 crore, up from ₹1,069.31 crore in Q1 FY25.

• PAT loss narrowed to Rs. 7 Cr (Non-GAAP) and Rs. 18 Cr (GAAP), both improved year-over-year.

• Gross margin remained stable at 37.6% (Non-GAAP) and improved 30 bps to 40.9% (GAAP) YoY.

• Losses in the Intune format increased due to rapid expansion, but were within budgeted expectations.

Outlook and guidance

• Premiumization to reach 70% of sales by FY26 end, with continued launches in premium categories.

• Management expects the next two quarters to be strong, driven by festival season and continued premiumization.

• Focus on inventory optimization, digital transformation, and sustaining loyalty above 80%.

• Expansion plans include 7-8 new departmental stores, 30-40 Intune stores, and 2-3 beauty stores in the coming year.

• Above-average monsoon and lower income tax rates expected to boost demand.